A five-year loan is being repaid with level monthly installments, one at the end of each month beginning on 1/1/2018 and ending on 12/31/2022. A 12% nominal annual interest rate compounded monthly was used to determine the amount of each monthly installment.

In which of the following periods does the outstanding loan balance first fall below one-half of the original amount of the loan?

a) January 2018 through March 2020

b) April 2020 through June 2020

c) July 2020 through September 2020

d) October 2020 through December 2020

e) January 2021 through December 2022

Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 14 percent return on its investment.

During the past week, management of the company’s Northeast Division was approached about the possibility of buying a competitor that had decided to redirect its retail activities. (If the competitor is acquired, it will be acquired at its book value.) The data that follow relate to recent performance of the Northeast Division and the competitor:

Management has determined that in order to upgrade the competitor to Megatronics’ standards, an additional $150,000 of invested capital would be needed.

Required:

1. Compute the current ROI of the Northeast Division and the division’s ROI if the competitor is acquired.

2. If divisional management is being evaluated on the basis of ROI, will the Northeast Division likely pursue acquisition of the competitor?

3-a. Compute the ROI of the competitor as it is now and after the intended upgrade.

3-b. If ROI is used as the basis for evaluation, would Megatronics Corporation likely be in favor of the acquisition of the competitor?

4. Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading.

5-a. Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division’s residual income if the competitor is acquired.

5-b. If divisional management is being evaluated on the basis of residual income, will the Northeast Division likely pursue acquisition of the competitor?

Compute the current ROI of the Northeast Division and the division’s ROI if the competitor is acquired. (Round your answers to 2 decimal places (i.e., .1234 should be entered as 12.34).)

Compute the ROI of the competitor as it is now and after the intended upgrade.

Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division’s residual income if the competitor is acquired.

1. The following information is available for the first three years of operations for Santos Inc.:

1. Year              Taxable Income

      2020                         $850,000

      2021                           900,000

2. Depreciation of property, plant and equipment for financial reporting purposes amounts to $30,000 each year for 3 years beginning in 2020. The company is able to deduct the full cost under the IRS Code Section 179 $90,000 amount allowed for tax purposes in 2020 (note there is no tax depreciation in future years).
3. On July 1, 2020, $280,000 was collected in advance for rental of a building for a two-year period July 1, 2020 – June 30, 2022. The entire $280,000 was reported as taxable income in 2020. The company uses the accrual basis of accounting for financial statement purposes.
4. In 2021 Santos Company recorded a $40,000 accrual for litigation liability which will be paid in 2022.
5. The company sells its merchandise on an installment contract basis. In 2020, Santos Inc. reported gross profit of $220,000 tax purposes, and $520,000 for financial statement purposes. This will result in taxable amounts of $150,000 in each of the next two years.
6. Warranty expense accrued for financial reporting was $12,000 in 2020. Warranty deductions on the tax returns were $7,000 in 2020 and $5,000 in 2021.
7. Santos Inc. paid a $2,000 fine in 2021 for violating pollution laws.
8. The enacted tax rates existing at December 31, 2020 are 20% for 2020 and 25% for 2021 and thereafter.      

Instructions

1. Complete the worksheet provided. It includes the following.
   1. A reconciliation of Book Income to Taxable Income for 2020.
   2. A schedule of future taxable and (deductible) amounts at the end of 2020.
   3. A schedule of the deferred tax (asset) and liability at the end of 2020.
   4. The journal entry to record income tax expense, deferred income taxes, and income tax payable for 2020.
2. Show how the deferred income taxes should be reported on the Balance Sheet at December 31, 2020.
3. Show how the taxes should be reported on the Income Statement at December 31, 2020.
4. Repeat a. to f. above for 2021.

****Please show calculations or how you got the figures.

I will upload worksheet in a comment

1. Which of the following industries is the best example of an oligopoly?

A. Corn production

B. Automobile production in the United States

D. Production of t-shirts

C. Pizzerias in New York City

2. Oligopolistic firms have a special constraint, not faced by other types of firm. What is it?

A. Demand

B. The reaction of rival firms

C. Costs

D. The need to play games

3. Of the following markets, which is most likely to have contestable markets

A. Nuclear power generation

B. Trucking

C. Dentistry

D. Automobile manufacturing

4. Market coordination is easier with which of the following?

A. Many smaller firms

B. A few firms of same size

C. One large and many small firms

D. More than four firms

5. Oligopolistic interdependence is the need to do which of the following?

A. Pay close attention to the actions of rival firms

B. Pay attention to the actions of the government

C. Pay attention to their internal costs

D. Pay attention to their inputs

Unit 9

Discussion Board

Please use your own experiences and the knowledge you have gained from this week’s readings to answer the following topics and questions. Make sure you use economic concepts in your main contribution.  

The purpose of this assignment is to understand the terms import and export, and then explain the advantages or disadvantages of buying imports rather than buying domestic products. You could, for instance, write about an imported automobile, stereo, or household appliance that you bought or considered buying. Include all of the following points in your discussion.

1. If you were a retailer, would you want to sell domestically made goods or imported items? Please explain why you made this choice.
2. If you wanted to sell a good or service to customers in other countries, what sorts of items do you think you could export?
3. In your opinion, should the United States’ Federal Government support companies that want to enter export markets? Please explain.

Babcock and Marks (2010) reviewed survey data from 2003-2005, and obtained an average of u = 14 hours per week spent studying by full-time students at 4-year colleges in the United States. To determine whether this average has changed in the past 10 years, a researcher selected a sample of n = 64 of today’s college students and obtained an average of M = 12.5 hours. If the standard deviation for the distribution is σ = 4.8 hours per week, does this sample indicate a significant change in the number of hours spent studying? Use a two-tail test with alpha = .05. List, number, state, and clearly show all 4 steps of the hypothesis test. For step 2, state alpha and describe the critical regions of the test statistic distribution. Step 4 must also answer the question posed in the problem. Clearly show all calculations steps to get answers including formulas needed to solve this problem. Answers must be typed or word processed.

Recently the U.S. Department of Education released a report on online learning stating that blended instruction, a combination of conventional face-to-face and online instruction, appears more effective in terms of student performance than conventional teaching. You decide to poll the incoming students at your institution to see if they prefer courses that blend face-to-face instruction with online components. In an SRS of 300 incoming students, you find that 213 prefer this type of course.

(a) What is the sample proportion who prefer this type of blended instruction? (Round your answer to two decimal places.)

(b) If the population proportion for all students nationwide is 85%, what is the standard deviation of p̂? (Round your answer to four decimal places.) σp̂ = ?

(c) Using the 68–95–99.7 rule, if you had drawn an SRS from the United States, you would expect p̂ to fall between what two percents about 95% of the time? (Round your answers to two decimal places.)

Amount Spent on Energy: The table to the right shows the amount spent (in dollars) on energy in one year for a random sample of households from four regions in the United States. Conduct a test at the alpha equal .05 level to determine if there is a difference in the mean amount spent in dollars on energy Run the ANOVA analysis using excel data analysis tools on this sheet to show the work. Answer the following questions on the answer sheet: 2a. State the Null Hypothesis 2b. What is the Resulting F value? 2c. What is the resulting F critical value? 2d. What is the p value? 2e. What is the decision (accept or reject the null hypothesis?

Lets use our imagination to explore differing perspectives on the crises in Europe and the United States: Try to put yourself in the position of a Greek worker, let's say a nurse or a clerk. How do you feel about demands on your government from the European Union and European Central bank that you pay and pension be dramatically cut? Or, perhaps there are recommendations that your job be cut. Provide a brief description. Compare and contrast this perspective with the perspective of a German worker, let's say an autoworker or a technology company. How do you feel about demands on your government to bail out the Greek economy?

Next, try to put yourself in the position who has lost his or her job in the financial crisis, say in 2009, and, consequently, can no longer afford mortgage payments, let's say an autoworker, a construction worker or other worker, or someone working in the financial industry. How do you feel about legislation that like TARP and ARRA? Be specific in your response.